Centene Corp (CNC)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,326,000 | 4,334,000 | 4,567,000 | 2,893,000 | 2,627,000 | 3,268,000 | 2,985,000 | 2,681,000 | 2,489,000 | 1,737,000 | 1,803,000 | 4,317,000 | 3,515,000 | 3,785,000 | 3,099,000 | 1,730,000 | 2,206,000 | 2,281,000 | 2,132,000 | 1,921,000 |
| Interest expense (ttm) | US$ in thousands | 725,000 | 716,000 | 704,000 | 685,000 | 665,000 | 653,000 | 654,000 | 655,000 | 665,000 | 680,000 | 694,000 | 718,000 | 728,000 | 664,000 | 579,000 | 493,000 | 412,000 | 397,000 | 395,000 | 374,000 |
| Interest coverage | 5.97 | 6.05 | 6.49 | 4.22 | 3.95 | 5.00 | 4.56 | 4.09 | 3.74 | 2.55 | 2.60 | 6.01 | 4.83 | 5.70 | 5.35 | 3.51 | 5.35 | 5.75 | 5.40 | 5.14 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,326,000K ÷ $725,000K
= 5.97
Centene Corp.'s interest coverage ratio has shown some fluctuation over the past eight quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates a more comfortable financial position in terms of meeting interest payment obligations.
Centene Corp.'s interest coverage ratio has ranged from a low of 4.77 in Q4 2023 to a high of 6.04 in Q3 2022 and Q2 2022. Generally, the company has maintained a relatively healthy interest coverage ratio above 5, indicating that it has sufficient operating income to cover its interest expenses. This suggests that Centene Corp. has been able to manage its debt obligations effectively and is less vulnerable to financial distress due to interest payments.
Overall, the trend in Centene Corp.'s interest coverage ratio shows a level of consistency and stability, with some variability in performance between quarters. Investors and creditors may view this positively as it indicates the company's ability to generate enough earnings to comfortably meet its interest expenses.
Peer comparison
Dec 31, 2023